New Delhi: After a gap of four years, the district administration has announced revision of circle rates in Gurgaon, which will be implemented from today (Monday), February 12, according to a report in the Times of India. Circle rate is the minimum price at which a property is registered when being transferred, and stamp duty from it is a major source of revenue for the government.
Circle rates in Gurgaon had remained unchanged in 2014-15 and 2015-16, before being reduced by 5 to 10 per cent over the past two years, owing to slump in the real estate sector. Realtors see the upward revision as an indication of revival of the sector.
Earlier, circle rates were revised once a year, but experts said a sustained slowdown in the real estate market has forced the government to fine-tune levies on real estate, the TOI report said
According to the TOI report, the new rates have divided the city into different areas. Every sector or colony has different rates, and for the first time, roads like Golf Course Road, MG Road, Delhi-Gurgaon expressway and Sohna road have been categorised as a separate circle with similar rates.
Circle rates for areas like Ambience island and Aralias have shot up, while it has remained mostly unchanged in areas like Ardee City, South City and Mayfield Gardens, the report further said.
Meanwhile, rates have increased in villages within city limits, while rates of flats and independent floors in new sectors have witnessed marginal change. Circle rates of commercial properties have increased significantly across the city, the report said.
“For the first time, circle rates will be applicable for as many as 15 colonies, which have been regularised and brought under MCG, and now properties in these areas can be registered,” the TOI report quoted Hari Om Attri, district revenue officer (DRO) as saying.
He added the administration has tried to rationalise prices of properties in different areas of the city.
“After years of slump and radical reforms like demonetisation and Rera, the real estate market is in revival mode. People have started buying houses and we’re expecting a rise in demand,” the TOI report quoted Rahul Singla, director, Mapsko Group as saying.
Ssumit Berry, managing director of BDI Group, said affordable housing is going to be the sunrise area in real estate. “Demand for affordable housing is expected to increase, as more and more end-users are buying homes,” TOI quoted Mr Berry as saying.
To keep real estate and land prices in urban and rural areas in tune with market rates, the Haryana government in December 2017 had decided to revise collector rates twice in a financial year, the TOI report further added. “Most likely, the next rate revision will happen mid-year,” TOI quoted the official as saying.